Mezzanine Loans in Plain English

Mezzanine loans are similar to second mortgages, except a mezzanine loan is secured by the stock of the corporation that owns the property, as opposed to the real estate.  If the lender forecloses on the stock, it owns the corporation that owns the building.  

Why use a mezzanine loan?  Why not just use a garden-variety second mortgage?  The answer is that a lender can foreclose on a mezzanine loan in just 5 weeks, as opposed to 18 months.

You will never find a mezzanine loan in a first mortgage position.  

Since mezzanine loans can be foreclosed in just 5 weeks, no owner of a $50 million office tower is going to put himself in a position where his building could be repossessed while he is on a three-week camping trip with his family.  "Hey boss, while you were away, Linda forgot to make the mezzanine loan payment.  Last Wednesday the mezzanine lender executed on the building, and you were completely wiped out."  Yikes!  

By the way, a lender forecloses on a mortgage and executes on personal property collateral (cars, equipment, coin collections, etc.).  Therefore there will always be a big first mortgage in front of a mezzanine loan.  In the capital stack, the pecking order of priorities would be the first mortgage, followed by the mezzanine loan, followed by owner’s equity in the property.

What type of loan do you need?

VA asks for input on Veteran suicide

When the President signed executive order "PREVENTS," creating an inter-agency task force, leadership within VA and the White House began planning a road map to address the national tragedy of Veteran suicide.

They now ask for your help. The PREVENTS Task Force is releasing an RFI (Request for Information) to get your ideas in radically reducing suicide among Veterans. 

"Veteran suicide requires an all-hands on-deck approach” said VA Secretary Robert Wilkie.

Learn More

Vets, Get The Job You've Earned

Bridge Loans

A bridge loan is defined as a short-term real estate loan that gives the property owner time to complete some task - such as improving the property, finding a new tenant and/or selling the property.  

The typical commercial property bridge loan has a term of one to two years, although many commercial bridge loan lenders will grant the owner the option to extend his loan for six months to one year for a fee of between a half-point point to two points.

Hiring Expected To Escalate Among 33% Of SMBs For The Rest Of 2019

BOSTON, July 11, 2019 /PRNewswire/ -- Alignable, the largest online network of small businesses with 3.6 million+ members, is launching a new campaign to share the most important trends emerging among SMBs each month.....

• New Hires Are Required ASAP. One of Alignable's hiring surveys revealed that 33% of business owners feel more bullish about adding staff now than they felt in January. Only 6% plan to hire fewer people or downsize, while the remainder will hold steady with original hiring plans. A total of 3,456 small businesspeople were polled. 

I wonder how many of these small business owners will be using WOTC to capture the federal tax credits they are entitled to for new hires, even seasonal or part-timers? The tax credits can range from $2400 - $9600 and even if a SMB hires only one person, they qualify for this unique program.

Another one is coming.....!!!

"Business opportunities are like buses, there's always another one coming." - Richard Branson -  

http://bit.ly/2cv3i8O 

3-5 seconds

It takes only 3 to 5 seconds to form a first impression. If your business doesn’t capture attention at first glance, not only are you missing out on brand recognition but on sales too.

Mom's Advice

"Opportunity is missed by most people because it is dressed in overalls and looks like work." - Thomas Edison - As Mom would say, "it's time to take a shot" - http://bit.ly/2cv3i8O